FDIC Avoids Liability For Dime Bancorp Warrants

By Pete Brush

Law360, New York (August 9, 2010, 12:08 PM ET) -- A federal judge has tossed a putative contract class action claiming the Federal Deposit Insurance Corp. owed a group of investors for warrants tied to a $356 million award for Dime Bancorp Inc., which was bought in 2002 by now-bankrupt Washington Mutual Inc.

Plaintiff Edward Mintz's suit failed to state a claim against the FDIC for potential liability as receiver for Washington Mutual Bank, Judge Paul L. Friedman ruled Friday in the U.S. District Court for the District of Columbia. The decision brings an end to...